PensionsEurope welcomes the opportunity to reply to the “consultation on the Assessment Methodologies for Identifying Non-Bank Non-Insurer Global Systemically Important Financial Institutions - Proposed High-Level Framework and Specific Methodologies”, published on 4 March 2015 by the Financial Stability Board (“FSB”) and the International Organization of Securities Commissions (“IOSCO”).
Increasing long term investments in the real European economy is the core policy of the CMU initiative, and this means it is vital that the CMU works for pension funds. Many pension funds currently encounter barriers in the form of a mismatch between their own long-term investment horizons and the short-term focus of much of the regulatory framework. Furthermore, political and regulatory risks are a key source of uncertainty for investors and can undermine pension funds’ willingness to invest.
PensionsEurope’s position and response to the consultation explore these and other issues. Such as why and for whom pension funds invest. Under the right conditions, pension fund capital can contribute to the future growth of the EU real economy. However, this will only happen if EU policies take into account the characteristics of pension funds.
The current low-interest rate environment and the Quantitative Easing (QE) policy of the ECB put severe pressure on both Defined Benefit (DB) and Defined Contributions (DC) pensions funds. While PensionsEurope does not question the ECB monetary policy as such, we warn against the damaging impact of QE on pension funds and European pensioners. We therefore call the national and European regulators to consider this issue. PensionsEurope also provides some recommendations in order to find an adequate balance between the short/medium term challenging environment and the sustainability of pension promises.
You can find the paper here
In January 2015 EIOPA published the consultation paper report on Good Practices on individual transfers of supplementary occupational pension rights, which relates back to the Call for Advice (CfA) on portability EIOPA received from DG Employment and Social Affairs. PensionsEurope provided input to EIOPA, which can be found here
PensionsEurope today reaffirmed its opposition to EIOPA’s Holistic Balance Sheet (HBS) project and called on EIOPA to divert its energies to tackling more pressing pension challenges. PensionsEurope’s statement came in a position paper summarising its response to EIOPA’s 111-question consultation paper on the Holistic Balance Sheet. The consultation was published on 13 October 2014 at EIOPA’s own initiative.
Although PensionsEurope recognises that EIOPA has addressed some of the issues raised during previous rounds of consultations, the HBS still contains many shortcomings and is not suitable as a regulatory instrument at EU level. PensionsEurope warns that the HBS would place unacceptable burdens on IORPs and their sponsoring undertakings and would have detrimental effects for millions of EU citizens.
You can find the press release here.
PensionsEurope endorses Fleming Europe's 2nd Annual Pension Funds in CEE on 18 - 19 March 2015 in Prague Republic. You can find the programme here.
On 13 January 2015, PensionsEurope submitted its response to the EIOPA Consultation Paper on solvency for IORPs.
The response is available here.
Today, PensionsEurope published its Statistical Survey 2014. The survey is based on data provided by PensionsEurope’s members and covers different figures for the year 2012 and best estimates for 2013.
The survey and the accompanying explanatory note are available here
Today, the Permanent Representatives Committee agreed, on behalf of the Council, its negotiating stance on a draft IORP II directive. This agreement enables negotiations with the European Parliament.
PensionsEurope welcomes the Council negotiating stance agreed today and is looking forward to engage and discuss with the European Parliament.
PensionsEurope will continue working closely on this topic with the aim to support institutions for occupational pensions provisions (IORPs) in providing adequate, safe and sustainable pensions for the people of Europe.
You can find the press release here.
On 13 October 2014, EIOPA published a consultation paper on further technical work on the holistic balance sheet to gather input from stakeholders. The paper constitutes a further step in EIOPA’s work on a risk-based framework for occupational pension funds.
The consultation paper proposes improved definitions and methodologies to value the holistic balance sheet, covering areas such as the valuation of sponsor support, the benefit reduction mechanisms and discretionary decision-making processes and the definition of contract boundaries. The paper consults on different possible uses of the holistic balance sheet within a supervisory framework, ranging from an instrument to establish funding requirements to a risk management and transparency tool to assess the long-term sustainability of IORPs.
The further work on the holistic balance sheet has to be tested through a quantitative assessment. EIOPA expects to publish draft technical specifications for such an assessment by early 2015.
The consultation will end on January 13, 2015
More information can be found here